• $5.6M US Department of Defense project successfully completed
• Prototype formally accepted and validated by end users
• Commercialized technology through launch of MR-1 mixed reality training system
• First commercial sale of MR-1 to a separate US DoD customer

xReality Group Limited (ASX: XRG) has announced that its defence and law-enforcement simulation subsidiary, Operator XR, has successfully completed all milestones of a 20-month, $5.6 million subcontract for the US Department of Defense. The project, first announced in September 2024, involved the development of a new immersive training capability, which was delivered on time and on budget. The prototype has been formally accepted by the customer and validated by end users following final acceptance testing. To commercialize the technology, xReality Group has launched MR-1, Operator XR's next-generation mixed reality training system. MR-1 combines mixed reality headset integration, realistic training weapons, and offline-capable software architecture developed during the DoD program into a packaged training solution. The company has already secured the first commercial sale of MR-1 to a separate United States Department of Defense customer, as announced in the Quarterly Activities Report on 30th April 2026. The successful completion of the DoD project and the launch of MR-1 validate the company's technology and its team's ability to deliver innovative, ambitious training capabilities on an aggressive timeline. The new system opens up new markets and use cases for training complex high-threat scenarios in real locations, complementing the existing OP-2 Virtual Reality-based training system.

The launch of MR-1 and its first sale to a new US DoD customer show that the capability built through the R&D program has immediate, broader application across Defense and Law Enforcement. This is the multiplier effect the company has been working toward.